Question: Near the end of its scal year a not for pro t university

Near the end of its fiscal year, a not-for-profit university was awarded a $2 million National Science Foundation grant to conduct biological research. Yet, consistent with GAAP, the college made no accounting entries with respect to the grant until the following year. How can you defend an accounting principle that permits an institution to avoid recording such a significant amount of revenue?

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  • CreatedAugust 13, 2014
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